I've just left work on a package and want some advice

goonery

Hi everyone , new here
I've just left work on a CA package and an early pension so would like some ideas as to what to do with some of the proceeds.

Firstly we are selling our property and not buying another, this will pay of the mortgage and leave some small profit after expenses.

The Lump Sum Pension payment will be the maximum allowed tax free

I'll get about a years salary as an ex gratia payment from my employer

So, after paying off all debts and buying my company car at about 50% of its value I'll have around £100000 in the bank.

The monthly pension along with my wife's earnings will cover all our living expenses, so the question is what is the best home for the £100k so that some of it is is partially accessible, and some earning a longer locked in term interest rate that is higher ?

Quite a lot to mull over , but I'd be interested in what you all might have as ideas

Thanks

dunstonh

The Lump Sum Pension payment will be the maximum allowed tax free

Is that the best option?

so the question is what is the best home for the £100k so that some of it is is partially accessible, and some earning a longer locked in term interest rate that is higher ?

How long is longer and what is the future plan for the money?

goonery

The lump sum is the best option for our situation as it means paying little or no tax on the monthly pension payments, the long term would be say 5 to 10 years

C_Mababejive

Where will you live?

goonery

We have another property with no mortgage, so just general expenses such as utilities and maintenance bills to pay

goonery

Bump !!

Not much in the way of response but thanks for looking

Andystriker

Put it in the AA 5 year bond at 4.46% Gross monthly interest. If you are a basic rate tax payer this will give you around £300 per month to supplement your income.

amcluesent

100k is enough to diversify across a portfolio. Obviously low risk, and in an ISA wrapper as far as possible if you still pay income tax.

If you trust your partner you could move some money to them to allow doubling up.

25 in an limited access savings account
25 in a 2 year bond
NS&I three year index linked will take 15
10 in a high yield investment trust focussed on tobacco, miners, oilers
10 in premium bonds for a flutter
10 in bullion gold
5 in Zopa

NB worth spending £500 or so with BUPA for a full medical so you can do what's needed to enjoy your retirement !